5 Tech Companies Most Likely to IPO in 2016
Table of contents
When it comes to disruptive technology, it’s not always the most value add startups that end up having an IPO. Having an IPO simply means that there is enough interest from the institutional investment community for you to sell shares on the open market. Oftentimes successful companies don’t go the IPO route, but instead are acquired, go out of business, or merge into other companies. Many factors go into play when determining which companies could IPO next and who better to make that prediction than CB Insights. Using their Mosaic algorithm, they picked 534 tech companies they think will IPO in 2015. Out of those 534 potential IPOs, here are the top-5:
Actifio was described by Forbes in 2012 as “history’s fastest-growing storage startup”. The firm deals with “copy data”, essentially duplicate data which is found in storage systems and which quietly consumes around 75% of storage needs. With hundreds of enterprise customers like IBM, Dell, HBO, and Time Warner, Actifio saves their customers millions of dollars in what they see as a $46 billion “global copy data management” market.
MuleSoft claims to solve one of the biggest problems in information technology; that of connectivity. With clients like eBay, Salesforce.com, G.E., Boeing, AT&T, Target, and Tesla, MuleSoft builds integration software which changes how the global enterprise connects apps, data, and devices. Their value proposition may be better explained with the following picture:
Any questions?
Okta is a firm that helps enterprises to make things more secure and easier to access. “Single sign-on” (SSO) for example means you don’t have to remember 10 different passwords but can just use one password to access multiple disparate applications in your organization. Their solutions are priced per user from $1-$4 per month with their SSO solution priced at $2 a month per user. They have 1000s of clients already, and they like to play ping pong.
Nutanix builds some really cool techie stuff which they describe as follows:
Hyperconverged infrastructure natively integrates compute and storage into a single x86 based server deployed in scale-out clusters.
Nice. So essentially if you need computing power they will sell it to you and the upfront costs along with maintenance costs will be 40-60% less than if you went out and bought all those servers yourself. Think one big machine running 100s of virtual machines. They can also deploy that solution 8X faster and scale it as you need. Their clients include eBay, Best Buy, Samsung, Toyota, Vodafone, and many other big names.
Zuora is a company that sells you software which allows startups or enterprises in any industry to launch and monetize any subscription products and services. In a world where things are leaning more towards pay-as-you-go instead of purchasing things outright, there is a strong demand for subscription management software. Zuora has 700+ clients.
Conclusion
It’s not surprising to see 2 data storage firms in the top-5. In our last article, we discussed various disruptive technology themes that are creating the “big data” which then drives the need for data storage. Software-as-a-service (SaaS) is also not surprisingly represented by 2 companies. Companies like Concur, Workday, and Salesforce.com are all evidence that SaaS has disrupted plenty of industries already. Since it seems like there is a data breach every other week, it’s also not surprising to see a security firm on the top-5 list as well. While “traditional tech themes like SaaS or cybersecurity don’t fall under the types of disruptive technology we discuss here on Nanalyze, it’s still good to learn about what sort of names we might see for tech IPOs in 2016.
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